SE8: Developing policies that require developers to connect and/or contribute to existing or proposed district heating schemes

Description and rationale for policy objective

The object of this policy is to ensure that the opportunity for new or existing development to facilitate, create or expand DHNs is capitalised on. The policy may designate areas as strategic district heating areas and require development in these areas to be designed to facilitate the use of DHNs and to connect to a DHN where one exists or is planned. This policy could cover the following:

• Requiring new buildings to be designed to be compatible with DHNs, for example in terms of:
  
  • safeguarding DHN routes;
  • ensuring that plant rooms have access arrangements for the entry of a heat main;
  • ensuring that the flow and return heating temperatures for buildings are optimised to suit the heat network;
  • ensuring that other buried services don’t create barriers to laying heat mains, and, where possible, provide suitable duct space
  • ensuring that the layout and density of new development is such that it minimises, as far as possible, the cost of laying heat mains

These requirements could be set out in an SPD or a design code that developers would be required to adhere to.

• Paying a connection fee/ making a financial contribution towards the cost of connection;
• Providing an energy centre and/or land for the same;

This policy objective can also be used in combination with a Sustainable Energy Infrastructure Fund, see policy option SE7.

The benefits of such a policy can be as follows:

• it can provide developers in those areas with a ready made solution for them to meet their future requirements under Building Regulations for zero carbon at minimum cost and effort;
• by encouraging the development and expansion of a DHN, it may also facilitate the connection of existing buildings to the network, with consequently larger carbon emissions;
• it can improve the bankability and viability of DHN schemes, and attractiveness to ESCos, as it provides them with a firm guarantee of future heat loads and customers;
• helps ensure that any existing heat generation plant is utilised to its full potential, with consequent benefits in terms of carbon savings, and financial performance.

The DHNs may be delivered through private investment, community investment, the public sector or a combination of the above in partnership. Policies like this can be important to attract private finance from ESCos and to give them the confidence to invest in such sites.